A

REPORT ON INDUSTRIAL TRAINING

UNDERGONE AT
M/S. CHAM SYNTHROPES
INDUSTRIES
PVT. LTD.,

REPORT PREPARED BY,

NAME :- KANSARA VIJAYKUMAR NARSHIHBHAI

ROLL NO :- 15

EXAM NO :-

STANDARD :- F.Y.B.B.A.

ACADEMIC YEAR :- 2005-06

GUIDANCE BY :-
INSTITUTE,
SHRI K.H.MADHVANI,
ARTS & COMMERCE COLLEGE,
AERODRAM ROAD,
PORBANDAR – 360575.

1
 SHRI K.H.M. ARTS & COMMERCE COLLEGE
PORBANDAR

C E R T I F I C AT E
THIS IS TO CERTIFY THAT
MR. VIJAYKUMAR NARSHIHBHAI KANSARA A STUDENT
OF F.Y.B.B.A. HAS COMPLITED HIS INDUSTRIAL
PRACTICAL TRAINING AND PREPARED A REPORT
UNDER MY GUIDANCE AND DIRECTION ABOUT THE
FOLLOWING INDUSTRIAL UNIT

M/S. CHAM SYNTHROPES

INDUSTRIES PVT. LTD.

SIGNATURE
OF GUIDE

________________
(MR. D.J.PARMAR)

PLACE :- PORBANDAR
DATE :- _____________

ACADEMIC YEAR :- 2005-06

2
 P R E F A C E
It is compulsory for each and every student of F.Y.B.B.A. to take an Industrial
visit of Industrial unit as per rules of SAURASHTRA UNIVERSITY the main purpose
of practical knowledge about the various aspect of Management & this enables the
students to take deep interest in the studies.

I took my visit to the M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD.,

PORBANDAR in the ACADEMIC YEAR 2005-06 which was in our F.Y.B.B.A.
syllabus.

Sincerely, I have noted all the facts which are required for precise and
meaningful report construction and also I have covered all the information required.

ACKNOWLEDGEMENT
I am very thankful to executive persons of M/S.CHAM SYNTHROPES
INDSTRIES PVT.LTD. & our honorable principal SHRI J.S.RAMDUTTI & B.B.A. in
charge PROF. D.J.PARMAR, PROF. R.V.KESHWALA, PROF.A.B.SAVJANI &
B.B.A. STAFF for giving us guidance to prepare Industrial Report.

My special thanks to MR. PREMJIBHAI K. CHAM for giving their precious

time in our favors. My hearty thanks to all the workers & officers for giving us idea
and all the necessary information to prepare Industrial Report.

Yours Faithfully,

_______________
( KANSARA VIJAY N. )

3
 C O N T E N T S

1 ) G E N E R A L I N F O R M AT I O N

2 ) P R O D U C T I O N D E PA R T M E N T

3 ) P E R S O N N E L D E PA R T M E N T

4 ) M A R K E T I N G D E PA R T M E N T

5 ) F I N A N C E D E PA R T M E N T

6) FUTURE PLAN

7) CONCLUSION

4
 GENERAL
I N F O R M AT I O N

C O N T E N T S

 INTRODUCTION

 MANAGING BODY

 HISTORY & DEVELOPMENT

 REASONS FOR LOCATION

5
 INTRODUCTION
For day to day use rope is & Important thing. It is usually used for fishing &
transportation. M/S.CHAMY GROUP OF COMPNIES has introduced M/S.CHAM
SYNTHROPES INDUSTRIES PVT.LTD. in 1995 as a partnership firm. The factory is
at VANANA, which is 8 km. far from PORBANDAR & it’s register office is located at
BOKHIRA. This is a large scale Industries producing Ropes.

REGISTERED OFFICE,
M/S. CHAM ICE & COLD STORAGE,
BOKHIRA,
PORBANDAR-360575.
PH. NO. :- 2246441-42
TELEX NO. :- 0L 66 – 207.

M A N AG I N G BO DY
There are several types of organization such as staff functional organization,
line type organization. The organization of M/S CHAM SYNTHROPES
INDUSTRIES PVT. LTD. Is line type organization. The chart of line type organization
is given below.

DIRECTOR
↓
DEPUTY GENERAL MANAGER
↓
PLANT MANAGER
↓
PLANT MANAGER
↓
______________________________________
↓ ↓
SUPERVISOR TECHNICIAN
↓ ↓
OPERATOR HELPER
↓ ↓
HELPER WORKERS

BANKERS:- Bank of Baroda

6
H I S T O RY A N D D E V E LO P M E N T

History of unit deals with the part performance, Production and development of
the unit, i.e.; how the progress of any unit is going on.

 M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD., was established in

December, 1995.
 M/S. CHAM Group of companies as a partnership firm.
 This unit of M/S. CHAM Group of companies produces rope.
 It is situated near PORBANDAR. At the outset it produced some different types of
ropes and gave it to some fishermen for use, and asked about its quality. The
fishermen liked the quality of the rope and the demand of the rope had increased
for fulfilling the demand M/S. CHAM Group of companies established the firm as
M/S. CHAM SYNTHROPES INDUSTRIES as a partnership firm.
 The main view of this factory is to produce large amount of rope for the fishermen
and cham-king fish factory. After the establishment this factory getting sufficient
rope and net at suitable time and at suitable price.

At present, the marketing of M/S. CHAM SYNTHROPES INDUSTRIES PVT.

LTD. Is better than any other rope factory, like GARWARE, SAURASHTRA
SAMUNDAR etc. at present the value of the plant is about Rs. ______________
Cores. Now, its production Capacity _____________________tone per 24 hours. By
increasing its production capacity and marketing, this company has captured the
market of other rope manufacturing units, like GARWARE.

By seeing its rope producing capacity, sufficient marketing techniques. We can

say that M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Will develop very
fast in the near future.

7
 R E A S O N S F O R L O C AT I O N
The location of the unit is very important to be taken in mind because the
location should be in a key place where other actors of production, such as raw
material, labor, power, etc. are easily available. M/S. CHAM SYNTHROPES
INDUSTRIES PVT. LTD. Is located near VANANA, 8 Km. from PORBANDAR.
There are advantages of location which M/S. CHAM SYNTHROPES INDUSTRIES
PVT. LTD. Gets because of its location which is stated below.

 AVAILABILITY OF RAW MATERIAL:-

If raw materials are available in sufficient quantities near by places easily and
regularly at a particular place, naturally industry would be located there. The main row
material for rope production is, POLYPROPYLENE, HEROPOLYNER or
PLASTIC’S SEEDS. The plant is located nearly its own area and from where factory
gets this raw material easily.

 TRANSPORTATION:-
Transportation is important facilities for any industry, so this facility generally
influences the location of industry, to get sufficient raw material and to send the
production in the market, the transport arrangement is very important for any company.
M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Gets the transport facility
very easily because PORBANDAR is such a place from where the various modes of
transportation. Such as Railway, Roadways and Seaways can be got very easily. The
factory uses the Roadways for transport the goods to several places.

 LABOUR FORCE:-
As this factory is situated at little backward area, which is under developed,
they can easily get workmen. The place where the factory is situated, sufficient labor
and workers are there. So the cost of labor here is low and the terms and conditions
are favorable to the factory.

 SUBSIDY AREA:-
The factory is established in a Government approved subsidy area. Hence the
land required for the factory could be procured at a cheaper rate. The group of
industries had their own land at the factory place. So they chalked the places for the
factory.

 FINANCE:-
We have seen that in the past most of the industries depended on many lenders.
But now days the finance is not important for the industrial location, due to the
commercial banks and other financial institutions are located all over the country. M/S.
CHAM SYNTHROPES INDUSTRIES PVT. LTD. Borrows money from “BANK OF
BARODA”.

8
 PRODUCTION
DEPARTMENT

CONTENTS
 PRODUCT & RAW MATERIALS

 USE OF PRODUCT

 PRODUCTION PROCESS

 USE OF MACHINERY FOR PRODUCTION PROCESS

9
 PRODUCTS AND RAW
MATERIAL

 PRODUCTS:-
The firm mainly produces two types of ropes :-
1) Silver grave.
2) Green grave.

 RAW MATERIALS:-
1) Polypropylene.
2) Homopolymer for producing rope.

These two types of raw materials are obtained from

1) M/S. INDIAN PETRO CHEMICALS LTD. BARODA. &
2) M/S. RELIANCE INDUSTRIES PVT. LTD.

 TYPES OF PRODUCTION OF ROPE:-

1) 2mm to 5mm
2) 6mm to 32mm

USE OF PRODUCT
M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD., produce different
types of ropes. Ropes are mostly use in transportation and fishing etc. and also uses in
different types of works as per our requires.

PRODUCTION PROCESS

10
 This unit has two different production departments. For production of ropes the
following process is carried out in the respective department.

 HEAT TREATMENT DEPARTMENT :-

First of all the plastic seeds are heated in heater machine, their of plastic are of
white color. Then the pieces of master base are added in them. There is more demand
of silver and gray colors. Then the rayon of plastic is made from automatic. After this
process the rayon are kept in a roll with use of the embossing machine.

 FOR MAKING ROPES:-

They rayon roll is transferred into another machine. Where the rope is made by
four wires in this process the workers use of ring twister.

 FINAL STAGE:-
The rolls of ropes are to be put in another machine for making ropes. These
ropes are to be made in different colors. In this stage the worker can make different
types of ropes and different size of rope, with use of the machinery, like STANDARD
TWISTERS in three parts.

 DIFFERENT SIZE OF ROPES:-

2mm, 6mm, 8mm, 12mm, 16mm, 23mm, 28mm, 32mm

USE OF MACHINERY IN THE PRODUCTION

PROCESS
 FIRST PART OF PRODUCTION PROCESS:-
1) P.P.Exsuder
2) Mixture
3) Roller Stand-1
4) Roller Stand-2
5) Embossing Machine
6) Winder

 SECOND PART OF PRODUCTION PROCESS:-

1) Ring Twister
2) S.R. 305
3) R.L. 100
4) R.L. 10 Twister

 THIRD PART OF PRODUCTION PROCESS:-

1) TL – 16 Standard (3 Bobbin)
2) TL – 16 Standard (5 Bobbin)

11
 PERSONNEL
DEPARTMENT

CONTENTS

 INTRODUCTION

 WAGES & SALARY

 RECRUITMENT PROCESS

 WELFARE ACTIVITIES

12
 INTRODUCTION
Personnel department mainly deals with the human factor in any unit. It is an
important other department in achieving the goal of the unit. It is the heart of general
management. Where objectives are to plane coordinate and control the resources.
Personnel management means to control the human factor in a unit with all our
intelligence and knowledge. The functions of this department are listed below :-

 MANAGEMENT FUNCTION:-
1) Planning
2) Organizing
3) Direction
4) Controlling

 OPERATING FUNCTION:-
1) Procurement of personnel
2) Development of personnel
3) Compensation of employees
4) Integration
5) Maintenance of personnel

All the functions are proposed by personnel manager.

WAGES & S AL ARIES

 WAGES:-
Wages contained is section 2(22), wages means all remuneration paid or
payable in cash to an employee, it the terms of the contract of employment, express or
implied, were fulfilled. The wages are paid to the labor who is engaged in direct
production. Wages are generally paid on daily basis or weekly basis, wages are
depending upon the personnel skill and experience.

 SALLARY:-
The terms salary refers the reward paid to employees in this industries. Salary
is given to the employee who is working in clerical and official or department. salary is
given on monthly basis.

13
RECRUITMENT PROCEDURE
The success of an organization mainly depends upon the man of skill, and
qualified workers who are chosen out of a number of applications for the job
recruitment is a positive process in searching the prospective employee. Here the
company M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Gets labor very
easily who are unskilled. So, here very few workers are selected on their educational
qualification. M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Selects men
who have done ITI or having some technical knowledge. Here total numbers of
workers are 100 in the rope plant.

W E L FA R E A C T I V I T I E S
In the welfare facility there are two of facilities. One is statutory facility
another is non statutory facility. The M/S. CHAM company provides the following
types of facilities.

 STATUTORY:-
1) Fist aid appliance
2) Canteen
3) Housing allowance

 NON-STATUTORY:-
1) Transportation

14
 MARKETING
DEPARTMENT

CONTENTS
 INTRODUCTION

 CHANNEL OF DISTRIBUTION

 MARKETING RESEARCH

 PRICE OF PRODUCTS

 ADVERTISING

15
 INTRODUCTION
Main and important function which is necessary for the economic prosperity of
the country is marketing without which, industry can not achieve its goal. It is a
comprehensive term. It includes primary resources like, human resources, financial
resources, and management resources, as well as a set of activities which enables the
final product to reach the consumer, in the process of exchange and distribution.

CHANNEL OF DISTRIBUTION
After production, the next problem is selling and distribution of final product.
The process of reaching the final product to the consumer, from its manufacturer is
called the channel of distribution. The channel of distribution of M/S. CHAM
SYNTHROPES PVT. LTD. Is as follows.

MANUFACTURED GOODS (ROPE)

↓
DEALERS
↓
SUB-DEALERS
↓
RETAILERS
↓
CUSTOMERS

16
 M A R K E T I N G R E A S E A RC H
This unit does not require a marketing research for its product. Since M/S.
CHAM SYNTHROPES INDUSTRIES PVT. LTD. Sells its product only in some
states, namely, Karnataka, Maharashtra, Goa, Gujarat etc. only in these states, the
product of M/S. CHAM SYNTHROPES IND. PVT. LTD.

This unit does not export to foreign countries. It has limited consumers in some
states only. So the market research does not have much significance. It makes
production on the basis of advance booking of purchase order.

PRICING THE PRODUCTS

The price of the product of M/S. CHAM SYNTHROPES IND. PVT. LTD. Is
given below:-

1) 2mm to 5mm - Rs.90 - per Kg.

2) 6mm to 32mm - Rs.84 - per Kg.

A D V E RT I S I N G
Advertising has very important role to play in any for promoting its sales. By
advertising the consumer knows about the product very easily. Only if knows the
product, he will but the product. Different companies choose different methods of
advertising in India.

This unit adopts the system of advertising for range amount of sales.

17
FINANCE DEPARTMENT

CONTENTS
 INTRODUCTION
1) FINANCIAL MANAGEMENT

 FINANCIAL PLANNING

 CAPITAL STRUCTURE

 SOURCES OF FUND

 FINANCIAL STATEMENTS
1) MANUFACTURING & TRADING ACCOUNT
2) PROFIT & LOSS ACCOUNT
3) BALANCE SHEET

 INTERPRETATION OF FINANCIAL STATEMENT

1) RATIO ANALYSIS

INTRODUCTION OF FINANACIAL MANAGEMENT

Financial management means planning, waging, sourcing, and controlling of
the firm in such a way so that main goal of the business can be easily achieved.

18
 What ever found employed in the business their should be maximum utilization
of the fund for this proper financial management must be their. The term financial
management consider the following aspect in detail.

FINANCIAL PLANNING
It means nothing but determination of total requirement of the fund in advance.
There should be proper financial planning so that adequate fund can be collected and
invested in the business.

C A P I TA L S T R U C T U R E
It means list of various sources of the fund. What kind of capital structure
should be form is mainly depend upon business condition, nature of business and view
of the management. Capital structure include all the resources of the long term fund.
Like capital, bond, bank loan, and other term loan etc.

“The CHAM IND. PVT. LTD. Borrowed secured loan from B.O.B. C.C. A/C.
Rs.2,498,615.93/- and unsecured loan as per schedule-B 7,397,559.08/-. “

SOURCES OF FUND
Sources of fund means the various tools through which required fund can be
collected. In case of sole proprietor firm and partnership firm main sources of fund are
individual capital, re-investment of profit, bank loans, term loans and other long term
loans. Where as in case of private limited or public limited company main sources are
share capital, reinvestment of profit, debenture, bank loans, bonds, and other term loan
and long term loans etc.

F I N A N C I A L S TAT E M E N T
Financial statement is prepared for the purpose of verifying financial and profit
position of business. It indicate various assets and liabilities as well as various income
and expenditure during the particular accounting period. “It is the mirror of the
business”. Through which detail investigation of the business enterprise can be done
from the view point of financial aspects.
This statements are generally prepared at the end of accounting year and
classified in three part as follows.

Trading account
Profit & loss account
Balance sheet

19
 TRADING ACCOUNT

Trading account for the year ended 31st March,2005

PARTICULARS CURRENT PARTICULARS CURRENT
YEAR RS. YEAR RS.

OPENEING STOCK 2,076,460.00 P.P.SALES 20,887,612.13

H.D.P.E.TWIN SALES 8,509,488.90
RAW MATERIAL CONSUMPTION
AS PER ANNEXTURE – “I” 21,662,396.18

PACKING MATERIAL PURCHASE 63,847.00

CLOSED STOCK
POWER CONSUMPTION 3,031,931.00 FINISHED GOODS 1,912,577.00

FUEL EXPENSES 239,070.00

TRANSPORT CHAGES 130,963.00

SALARY & STAFF WELFARE

AS PER ANNEXTURE – “II” 1,133,403.00

GROSS PROFIT 2,971,603.85

TOTAL… 31,309,678.03 TOTAL…. 31,309,678.03

PROFIT & LOSS ACCOUNT

20
 It is the statement which is showing total revenue income and gain, as well as
total revenue expenditures and losses, during the particular accounting period. It
disclosed the profit position of the business and it is also help full to collect the require
information for preplanning or budgeting need to be prepared to take certain important
business decision.

Profit & Loss account for the year ended 31st March, 2005
PARTICULARS CURRENT PARTICULARS CURRENT
YEAR RS. YEAR RS.

ADMINISTRATIVE EXP. GROSS PROFIT 2,971,607.85

AS PER ANNEXTURE – “III” 705,349.30
INDIRECT INCOME
REPAIRS & MAINTENANCE ISI SUBCIDY 119,750.00
AS PER ANNEXTURE – “IV” 1,053,303.00 INSURANCE CLAIM 72,000.00

BANK INTEREST 336,671.00 NET LOSS 574,876.45

DEPRECIATION 1,632,536.00

AUDIT FEES 10,375.00

TOTAL… 3,738,234.30 TOTAL…. 3,738,234.30

BALANCESHEET

21
 It is the statement which maintain total assets and total liabilities of the
business at the end of particular accounting year. This statement disclosed the financial
position, efficiency of the business and solvency of the business.

Balance sheet for the year ended 31st March, 2005

LIABILITIES CURRENT ASSETS CURRENT
YEAR RS. YEAR RS.

PARTNER’S CAPITAL FIXED ASSETS

AS PER SCHEDULE – “A” 15,994,193.95 AS PER SCHEDULE – “D” 6,713,463.00

SECURED LOAN CURRENT ASSETS,

B.O.B. C.C. A/C. 2,498,615.93 LOANS & ADVANCE
AS PER SCHEDULE – “E’ 20,548,978.97

UNSECURED LOAN
AS PER SCHEDULE – “B” 7,397,559.08

CURRENT LIABILITIES &

PRIVISION
AS PER SCHEDULE – “C” 1,372,073.01

TOTAL…. 27,262,441.97 TOTAL…. 27,262,441.97

INTERPRETATION OF FINANCIAL
STATEMENT
It is the nothing but analysis of financial and profitability of position of
business. In other word interpretation means nothing but investigation of certain
financial aspects of the business enterprise. It is necessary for taking some future

22
business decision and helpful to the out sides. Who are directly or indirectly interested
in business like creditors, bankers, prospective investors, government agency.

It is also useful for the purpose of making to comparison of the financial

position of the one business with another business for making comparison of the
financial position of the current year or compare to last few years – financial position
of the business. Several tools and techniques are use for the purpose of interpretation
of financial statement. One of the powerful techniques is the “ratio analysis” in which
several ratios as follows:-

 GROSS PROFIT RATIO:-

G.P.Ratio = Gross profit * 100
Total sales

= 2,971,601.85 * 100
29,397,101.03

= 10.11 %

It is a ratio expressing relationship between gross profits earned to net sales. It

is a useful indication of the productivity of business. Wear this ratio is 10.11%, so here
this ratio is very lower and here in his industrial business suffer from losses in his
recent years. So my instructions are the business unit to expand the sales or increases
this ratio.

 NET PROFIT RATIO:-

N.P.Ratio = Net Profit * 100
Net Sales

= -574876.45 * 100
29397101.03

= -1.95%

This ratio is valuable for the purpose of ascertaining the overall profitability of
business and shows the efficiency or otherwise of operating the business. Were there
are net profit is negative means here this industrial unit is suffering high losses so my
instruction is to grow this sales and decrease the production expenses so this unit can
change his net profit and get very satisfied net profit.

 ASSETS TURNOVER RATIO:-

A.T.Ratio = Cost of Goods Sold.
Total Assets

23
 = 29397101.03
6713463.00

= 4.38%

This ratio is very essential for counting the industrial turnover of assets. Here
this ratio is very low because of this unit is suffer from loss and its productivity is very
lower level.

 CURRENT RATIO:-
Current Ratio = Current Assets
Current Liability

= 20548978.97
1372073.01

= 14.97%

This most widely used ratio shows the preparation of current assets to current
liabilities. It is also known as “Working capital ratio”. As it is a measure of working
capital available at a particular time.

CONCLUSION
The firm’s gross profit has been substantially in the current year in comparison
with the previous year. This is the result of some additional cost incurred in the
manufacturing process of the firm.

The exports which have been shown in the trading account is now sufficient. So
it is required to boost up the export sales.

The reason far the net loss will be heavy expenses on maintenance of
machineries bank interest and heavy charge of depreciation.

24
 FUTURE
PLANS

FUTURE PLAN

25
 M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Has a very good
future plan.

Its plan is to expand their business in all over India and in other countries also.

The expansion plan will help the factory to achieve high profit and they will get
success in the competition in market. They think that their product is good and after
some time they hope that they will do their best. The raw materials are getting very
easily in large scale from M/S. I.P.C.L., BARODA. So they do not think about raw
material and making their product very good. So that they can satisfy the consumers.

CONCLUSION
26
 We visited the M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. This is
an important part of our syllabus. This industry has separate department. This industry
has good relationship between management and employees. By seeing the future plan
of the unit we can say that this industry will develop very quickly and in the near
future, as the industry is planning to do its business All Over India.

I wish good luck to all staff and management of M/S. CHAM SYNTHROPES
INDUSTRIES PVT. LTD. - VANANA (PORBANDAR).

27